The largest bioethanol factory in the United Kingdom should be closed with the loss of 160 jobs after the government has confirmed that it would not be bailout to the establishment of Lincolnshire.
The owners Vivergo, a subsidiary of Associated British Foods, had warned that the factory would close without government support, and business sources told Sky News that the end process that should begin.
An ABF spokesperson, who also owns Primark, said that the government’s decision was “deeply regrettable” and that she had “chosen not to support a key national asset”.
They added that the government “threw billions of dollars in potential growth in the Humber and a sovereign capacity in clean fuels that have had the chance to direct the world”.
Vivergo blamed the United Kingdom’s trade agreement with the United States, which ended a 19% price for imported ethanol, for making the factory non-viable.
Ethanol prices were cut with those of the beef as part of the British-American agreement, which focused on the reduction or removal of Donald Trump import taxes on British cars and aerospace parts.
The factory, which converts wheat into fuel generally added to gasoline to reduce carbon emissions, already lost 3 million pounds sterling per month before the trade agreement, with industrial energy prices, the highest among the developed economies, cited as a major factor.
Vivergo and Abf have warned of the factory threat since spring, but hoped that the government would lead to an improved offer by the end of the week. Friday morning, they were told that there would be no rescue.
Government sources said they used external consultants to provide advice and stressed that the factory has not been profitable since 2011.
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A government spokesperson said: “Direct funding would not provide value to the British taxpayer or solve long-term problems in the bioethanol industry.”
“This government will always make decisions in the national interest. This is why we have negotiated a historic agreement with the United States that has protected hundreds of thousands of jobs in sectors such as automatic and aerospace.
“We are working in close collaboration with companies since June to understand the financial challenges they have faced in the past decade, and have made the decision difficult not to offer direct funding because it would not provide value to the taxpayer or not solve the long -term problems with which the industry is confronted.
“We recognize that this is a difficult period for workers and their families and we will work with unions, local partners and businesses to support them throughout this process.
“We also continue to develop proposals that guarantee the resilience of our long -term CO2 supply in consultation with the sector.”
Unite Secretary General Sharon Graham said that the government’s decision not to support the Bioethanol industry in the United Kingdom was “short-sighted” and “does not fully take into account the advantages that the national bioethanol sector will bring to jobs and energy security”.
“Once again, the total absence of the government of a plan to support oil and gas workers as industry transitions are blatant,” added Ms. Graham.
Charlotte Brumpton-Childs of GMB Union said that the closure of the Bioethanol factories from Hull and Redcar would lead to “the loss of their livelihoods”, adding that it was the impact of prices and commercial transactions.
“These are not figures in a spreadsheet. These are suspended lives and potentially devastated communities, “she said.